About this Show

The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
528

PIXEL HEIGHT
480

TOPIC FREQUENCY

Boeing 14, Us 13, Faa 9, Joe 6, Joe Scarborough 6, U.s. 5, Chicago 5, Colorado 4, Larry Kudlow 4, Phil Lebeau 4, Algeria 4, Colin Powell 3, Mali 3, Msnbc 3, New York 3, Harry Reid 3, Howard Dean 3, United States 3, Ronald Reagan 3, Nan 3,
Borrow a DVD
of this show
  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    January 16, 2013
    7:00 - 8:00pm EST  

7:00pm
nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. just back up apple, 20 points again. my charitable trust owns it. can i make a suggestion? focus on some other companies. a lot of companies doing quite well. don't obsess about money. you make the rest of us obsess
7:01pm
about apple and i've done with the obsession. and i "the kudlo good evening, everyone. i'm larry kudlow. this is "the kudlow report." flanked by school children president obama lays out his case for gun control and cure tailing mass violence. new limits on assault weapons and high capacity ammo magazines. will it work? we'll debate that. the major gun maker stock finished much higher today and also talk what that might mean. importantly we have this breaking news. the faa has just moved to ground all 787 boeing dreamliner flights. that's right. the faa says this is until boeing can prove its on board batteries are quote safe and in compliance. this comes after a recent slew of on board fires on these new jets. finally tonight how can the gop
7:02pm
start winning national elections again? my pal and our special guest, joe scarborough, the anchor of msnbc "morning joe" is going to join us later. he and i will plot some republican reform. >> first up let's start with boeing. the faa has grounded the boeing 787 dreamliner in the u.s. pending a safeafet check of the plane's lithium batteries. united airlines has already announced it will comply with the order, they have no choice to do so. remember also boeing is a dow component and selling off in the aftermarket and remember this is all related to the recent spate of incidents on board the 787 both here and the united states and in japan. there's been fires in the cockpit on two occasions and fuel leaks as well. our phone phil lebeau will join
7:03pm
us with this story. now back to the headline story, president obama called on congress to further restrict assault weapons and limit ammo magazines today. marking the broadest push for gun control in a generation we have cnbc eamon javers who is here to join us with the details. >> reporter: it was an emotional event over at the white house. the president flanked by small children announcing his proposals on gun violence announcing a new assault weapons ban, limits on magazine sizes, enhanced background checks and access to mental health. the president said however that lawmakers up on capitol hill have a stark choice to make. >> what's more important? doing whatever it takes to get an a grade from the gun lobby that funds their campaigns, or giving parents some piece of mind when they drop their child off for first grade. >> reporter: the gun lobby in
7:04pm
the form of the national rifle association reacted today saying attacking firearms and igdmoirj is not a solution to the crisis we face as a nation. only honest, law-abiding gun owners will be affected and our children will remain vulnerable to the ineactivitiability of more tragedy. a lot of these proposals that the president put out were greeted with lukewarm response. john boehner's spokesman put out a statement saying the house will look at those recommendations and if the senate pass as bill they will look at that too but no commitment move to any legislation in the house of representatives. so, larry, it looks like a lot of these proposals will not happen but there were more than 20 elements of what he proposed today, the president that were, in fact, executive actions that he could sign today and enforce through the executive branch of the government and that he did. so the rest of the proposals will be legislative and we'll have to see how they fare.
7:05pm
>> as always, thanks eamon javers. the national rifle association is pushing back with a tough new ad campaign labelling the president an elitist hypocrite for allowing his own kids to have their protection. >> are the president's kids more important than yours? then why is he skeptical about putting armed security in our schools when his kids are protected by armed guards at their school? mr. obama demands the wealthy pay their fair share of taxes. but, he's just another elitist hypocrite when it comes to a fair share of security. protection for their kids, and gun free zones for ours. >> all right. the white house called the ad repugnant and cowardly. i think they are right. can i say something about this partisan back and forth. we have just come out of a heinous mass murder atrocity which is of course a complete national tragedy. all right. is it possible, just once that the republicans and the nra and
7:06pm
democrats and the president can stop this cheap unseemly squabbling just once? may we have a civilized conversation about what this nation can do to avoid another horrible sandy hook? all i want, all i want is a civil conversation. there's a lot of very complex pieces here and they need the best minds to figure this out. i just want the squabbling to stop. this is worst than the fiscal squabbling and the debt ceiling. you know why? the stakes are higher. we're talking human lives. those little baby angels. let's try in their memory to figure something out if stead of hurling epithat's and talking about impeaching the president and imperial presidency and all this crap. tonight i hope we'll do that. we have the president of the naacp, we have nationally
7:07pm
syndicated lars larson and congresswoman nan hayward. i'm not opposed to types this bill. cheap shots squabbling is wrong. this is a national tragedy. we need to do something about it. ben, may i begin with you. >> sure. >> what is your position on the president's view and do you believe that if he got what he wants, it would have stopped the awful heinous tragedy at sandy hook in newtown, connecticut which is right next door to where i live? >> we're very supportive of a whole lot that's in this bill. and it's clear that this would have made it harder to get these sorts of guns in the first place, harder to buy the high capacity clips, harder for a person who was unstable, you talk about newtown or columbine, talk about what happened in colorado more recently. and, it would also quite frankly make sure that that school had a plan. and it's important to all our
7:08pm
schools have plans on what to do on these days. what's also important here, though, is that it deals with both types of tragedies that we have in our country when it comes to young people dying from gun violence. because it also deals with what's going on in chicago and what's happening in new york and in so many other cities where kids may not be killed in the school, but they are killed just beyond the school house steps. >> let me get to the other two. i want to go to my friend nan. i'm not saying you need to favor it. what i've heard, we're going impeach him because he had executive orders. i can just say this? papa bush, george h.w. bush had an executive order that stopped the imports of assault weapons. that was back, if i'm not mistaken in 1989. so don't tell me executive orders is just an obama thing, it's not. let's go the substance of this thing. would it have stopped the heinous tragic crime? is it dealing with the mental
7:09pm
illness? is it dealing with the cultural issues? >> clearly, larry, you're absolutely right the president does have the power of the executive order. let's see the president use that power not only to issue executive orders but also as the thought leader in the country really to bring focus on what is the common factor in all of these dreadful things. i'm a mother, i'm a doctor. it's unimaginable and unthinkable and that is deviant behavior. these are criminal minds perpetrating these crimes. we need to have an effective approach to that problem. guns are inas a nm-- inanimate .
7:10pm
>> family break up. the fact that there's no faith or heaven forbid prayer in elementary school. is there enough of that in this? >> well, there's leadership on all accounts that we need including leadership quite honestly, larry, on the economy because a bad economy, unfortunately, doesn't give us the resources we need to allow for better interventions, let's say in mental health. let's look at a fellow democrat, the democrat from colorado who came out with a proposal to stream line their processes for identifying people who may be dangerous to themselves and others and also bolster mental health measures and initiatives. >> lars larson you're going to pose everything. what do you want? >> here's the problem.
7:11pm
the president shamelessly surrounds himself with children and used them as props. ben seems uninformed on this. this young man didn't buy his firearm. he stole it from his mother after murdering his mother. the president's proposed bill to congress to ban the manufacture and sale of new sporting rifles, semiautomatic rifles and large capacity magazines wouldn't have done a darn thing to stop sandy hook or aurora, colorado. it would have done nothing. >> let me ask you this. if it were in effect -- now i don't even know, there's issues about pistol grips and there's loopholes in this whole thing. >> it's all cosmetic. >> but, if it were in effect and you couldn't get your hands on new ones then the mother wouldn't have had the gun and the kid couldn't have stolen the gun. >> no. larry, you don't understand. >> lars -- >> the law-abiding gun owner and
7:12pm
the reality is we have to make it harder for law-abiding gun owners to get things that only the military should have. >> what good does that do, larry, with all due respect. larry, it doesn't make any sense to make it harder for law-abiding people to get guns. it's the criminal doing the crime. >> it certainly does. >> they are not military grade. it's such a canard. these are not military grade weapons. they look scary to liberals. >> look -- >> hang on one second. look, i don't know what the answer is. i'm just saying i'm speculating here and i may be dead wrong. there are loopholes. here in new york state if you have a pistol grip you can't by the automatic but if you don't have the pistol grip you can. i'm not sure in what the details of this is. i just want to inject that. i'm not taking a position but i'm saying --
7:13pm
>> it's all cosmetic. >> we got to figure out something. >> look, we have to be concerned about newtown and columbine and concerned about what happened at the theater in colorado and what's happening in chicago. and the reality is that this will go a lot further than the gun lobby has let us go in a very long time. >> larry, with all due respect, you know what's happening in chicago? children are being killed in chicago by pistols not by rifles. this doesn't do a darn thing. >> agree. >> nan. >> chicago is the number one city for gun laws in the country, the most restrictive, the number one city for gang-related violence and crime. >> suppose we had, let me ask you this. suppose we had ammunition magazine that wasn't 50 or 100 because then, look, the aurora movie that kid fired off i don't know how many rounds. this crazy kid fired off some people said 100 to 150 rounds in sandy hook. do we have to have these ammo magazines that are that big?
7:14pm
is it necessary, really? >> again, the guns and the magazines are the tools of criminals. it's not -- magazines are very rapidly changed. if somebody intends to do harm, that's the root cause and that's what we're not addressing. we have limited resources. we got to make sure that any legislation that we pursue, any measures we pursue actually do not cause more harm than good and we don't even talk about the statistics of firearms used in self-defense and those statistics actually can be quite compelling. >> lars, i just want to say to you. we may disagree on this we may not. as crazy as it may be, to me so much of this is about individual behavior. and they've taken the faith and they've taken the prayers out of our school system for many, many years. so much of this, lars, is about the impact on the kids of family breakup and no one wants to talk about family breakup.
7:15pm
ben, i think -- >> can we talk about health care? >> you know family breakup, you month the faith, you know all this stuff play as role in this. you know this. >> that's where we need school counselors. we should have one counselor for every 250 kids. in this country it's now one in 500. part of what we saw in this it will make it easier for schools to get those counselors, easier for schools to get psychologists. what we know those types of be folks help us create the sort of bonded close knit school community that makes it possible. >> baloney. come on. larry, this is crazy. larry, do you think a cool counselor would have changed adam lanza? adam lanza had access to mental health care. that's why his parents knew he
7:16pm
had problems. >> california, one week ago, two weeks ago, young man goes in there, been bullied, shoots one student, intends to shoot others and the teachers are able to talk him down. >> the counselor would have changed that. >> i got to get out. >> an armed guard didn't stop columbine did it. >> there's complex aspects to this. some have to do with guns. some with ammo. some with social conditions. some to do with mental health. some with faith and family breakup. i'm just saying let's have this conversation. you all were great tonight. let's just have this conversation without hurling political accusations, you know. i usually oppose mr. obama's economic policies. on this one he laid them out. let's have a talk about it. if we can come up with something better fine. anyway thank you ben, thank you la smp lars, thank you nan. >> the faa just announced grounding the 787 boeing
7:17pm
dreamliner until further notice. how crushing is this for boeing. the big airlines themselves, phil lebeau has a live report for us in just a moment and later in the show the debt battle seems to be tearing conservatives apart. once between i say do not play chicken with the debt ceiling and risk a default. by free market coke brothers agree. a new team of conservatives seems to be ignoring that advice and i think they are wrong but we'll debate it and don't forget, folks, free market capitalism is still the best path to prosperity. this is still the greatest country in the world. let us figure out our problems and we'll continue to greatness. i'm kudlow. we'll be right back. officeyour business needs...k... at prices that keep you...out of the red.
7:18pm
this week get a bonus $15 itunes gift card with any qualifying $75 ink purchase. find thousands of big deals now... at officemax. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! yeah, this is pretty good. [ male announcer ] over a third of a day's fiber. fiber one. [ male announcer ] over a third of a day's fiber. i've always had to keep my eye on her... but, i didn't always watch out for myself.
7:19pm
with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.
7:20pm
major breaking news tonight. the faa ordering all u.s. based airlines to ground boeing 787 dream liners amid a safety investigation. boeing shares now down nearly 2% after hours. cnbc's own phil lebeau joins us with the details. good evening, phil. >> reporter: hey larry is this a huge move by faa. while it directly applies to all u.s. airlines and only one right
7:21pm
now united airlines is actually flying the dreamliner, in reality what happens with the faa often sets the agenda for other aviation administrations in other countries around the world. you'll likely see other agencies in other countries fall in line with this and essentially what you're looking at here is ultimately all of the 787 dream liners will be grounded at least for the foreseeable future dill they get to the bottom of the issue. >> we already saw the japanese story. some of the jal planes were grounded. financially, phil, financially what does this mean? the stock is falling for boeing. >> reporter: too soon to tell for boeing. the big implication for boeing when you look at their production schedule they are making five of these dream liners a month, the plan is to make ten per month by the end the year. who knows what this directive from the faa does in terp of
7:22pm
lightning down production at least immediately boeing plans on building the dreamliners at the same right. if that production slows down, that will impact the revenue and that's where you'll see the real financial impact for boeing. >> all right. many thanks phil lebeau. appreciate the update. now we got growing violence in the african nation of mali. al qaeda linked islamist rebels have captured at least some american hostages. michelle caruso-cabrera will have an update on that story next. please stay with us. ♪
7:23pm
♪ ♪ [ male announcer ] you don't have to be a golf pro to walk like one. ♪ when you walk 10,000 steps a day, it's the same as walking a professional golf course. humana. health and well-being partner of the pga tour. humana. i've got two tickets to paradise!l set? pack your bags, we'll leave tonight. uhh, it's next month, actually... eddie continues singing: to tickets to... paradiiiiiise! no four. remember? whoooa whooaa whooo! you know ronny, folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? happier than eddie money running a travel agency. get happy. get geico. fifteen minutes could save you fifteen percent or more. ♪
7:24pm
♪ ♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit. introducing the all-new 2013 lexus ls f sport. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase.
7:25pm
>> a >> a major escalation in the warfare going on in frooik in mali and now algeria. as many as 41 hostages taken including americans. michelle caruso-cabrera is live to explain all this. good evening, michelle. >> reporter: good evening. it's all happening in algeria, in north africa where islamic militants have taken as many as 41 hostages. nbc news has learned from u.s. officials that there are three americans among those hostages. unlike the situation in benghazi last year the white house has wasted no time this time around calling this a terrorist attack. here's what the national security spokesperson had to say. we condemn in the strongest terms a terrorist attack on british petroleum personnel and facilities at an in amenas, algeria. we are closely monitoring the situation. leon panetta suggested military
7:26pm
action may be necessary. he said i want to assure the american people of the united states will take all necessary and proper steps that are required to deal with the situation. it happened overnight in eastern algeria, on the border of libya. this is a joint venture. algeria is a huge producer of natural gas supplies some 30% of natural gas to europe and these militants have said the reason they have conduct this attack is because of retaliation for french military intervention into neighboring mali. that's why they've undertaken this situation. so it's getting more and more intense in north africa and certainly we have seen the war on terror move from what was typically before what we call the middle east and east and now northern africa. >> as you well know the united states has quietly been helping the french who were trying to
7:27pm
quell the al qaeda linked rebellion in mali. is that a leading indicator, is that what panetta is saying there will be american footprints in this whole situation? >> reporter: that's unclear at this point. he's traveling in italy. those were brief comments to reporters. we'll find out in ensuing days what he means. >> thanks very much, michelle caruso-cabrera as always. now we're going to go from guns to the debt ceiling to the future of the republican party. there's a lot i have to say with my friend msnbc anchor joe scarborough. i think joe and i are about to give you all some republican reform thinking but we'll wait until after the break and see. >> four weeks to plan and then look at the -- -- ♪
7:28pm
[ construction sounds ] ♪ [ watch ticking ] [ engine revs ] come in. ♪ got the coffee. that was fast. we're outta here. ♪ [ engine revs ] ♪ hey! did you know that honey nut cheerios
7:29pm
has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy.
7:30pm
to welcome back welcome back to "the kudlow report." i'm larry kudlow. in this half hour the debt ceiling debate now seems to be splitting conservatives. that's right. and, again, i say raise the debt ceiling and then for the president to make spending cuts and follow through on the sequester. many conservatives including my good friend coke brothers free market folks agree with me. a new team of conservatives say
7:31pm
threatening the president with a default is the only way to make progress. they are totally wrong and we'll debate it. also don't look now but the economy got pretty good double dose of good news today, increased manufacturing and reduced inflation all looks pretty bullish. first up former republican congressman joe scarborough wants to remake the gop and in his latest op-ed he says now is the party's time to choose it's path for the future. all right. here now is my friend joe scarborough, host of msnbc's "morning joe." joe, you know what i like? i like the editorial but i like the tone. republican party's stand pat is going nowhere. let's start with your quote of my former friend and boss william f. buckley you should vote for the mo mos lectable conservative. >> no doubt about it. we made so many mistakes, self inflicted wounds over the past several election cycles. look, there's no way your good
7:32pm
friend william f. buckley would have ever told conservatives to jump off the cliff and vote for christine o'donnell or richard murdoch or sharon engel when they had a chance to vote for republicans that would have beaten democratic candidates. if you look at the mistakes we made in the primary process simply because we've had this ideological litmus test over the past, again, two election cycle, we've made harry reid, we have, not democrats, we've made harry reid the majority leader again. we just got to start playing smafrter. >> a better candidate than sharon engel. his polls were terrible. joe, let me say something else. i worked for reagan, okay. reagan was a big tent guy. he was inclusive. in his administration we had moderate republicans, we had conservative republicans, we had supply siders like myself, et cetera, et cetera, et cetera. can we go back to reagan's
7:33pm
model, can we open up the party a little bit. you know what i'm thinking about particularly. this whole issue about immigration, latino, african-americans, young people, joe the whole party is missing a whole demonstrato graphic in this country? >> no doubt about it. one of my biggest criticisms about mitt romney over the past couple of years i never really thought he understood freeman or thatcher or reagan because if you do get it, if you understand what you understand at your gut level, what i understand and many other conservatives, free market conservatives get, that is that what we believe in conservatism applies equally to an 18-year-old latino voter in los angeles as it does to a 65-year-old hedge fund manager in greenwich, connecticut. but too many conservatives don't get that. they haven't gotten it. so we've got to be a big tent
7:34pm
party but at the same time we've got to at least understand the basics of what we believe and that what we believe does apply whether you're a latino voter like you said, or, you know, a conservative republican in the northeast. >> i hate to keep coming back to reagan, joe. i cut my teeth, i worked for him in the first term. i regard myself to this day as a reagan republican, reagan conservative. joe, the point i'm trying to make. it should be an opportunity based party. it should be an inclusive party. but the party of economic growth. the party of giving you opportunities to build yourself up to pull yourself up the ladder and have social mobility so the lousy job becomes a better job becomes you own the store now you own real estate. you know what i'm talking about. i hear self deportation. i don't know what that means but it was ugly. >> yeah.
7:35pm
i don't hear that type of optimism. i also hear too often people constantly excludeing certain people because they are not conservative enough. you hear it all the time. you're a rhino. you're a rhino. colin powell on "meet the press" this past weekend he did define himself as a republican. a guy that ronald reagan picked to be his chairman of his joint chiefs. colin powell, i know, has supported for the past two terms, has supported barack obama. i'm glad, though, the guy still considers himself a republican and i want to figure out how to get him back under the big tent because as i write in the column you're talking about that's the first thing reagan would have done. reagan would have looked at colin powell okay how can i get that guy on my team. we haven't been thinking that way lately. we both to think that way again. you know what? it's not about ideological tests
7:36pm
at the end of the day it's about winning. that's what reagan understood. he didn't win 49 states by accident. >> we have to be the party of solutions. one of the things troubling me right now, look i disagree with barack obama's fiscal and economic policy. i have for four years and i reckon i'll disagree with it for a while longer. i'll tell you this. the guy goes out and gives this gun control, safety speech today. okay. you don't have to agree with everything. a very complex issue we're dealing with in this horrible heinous national tragedy. but already, joe, right away republicans, some of them are out there killing him. executive orders are no good. papa bush used executive orders on this very subject. you know what i'm saying. the gop has become the pessimistic party of dr. no not the solution party of let's get together and figure something out. we can do this. reban always said we can do this. right now the gop says we can't
7:37pm
do anything except bash obama. >> great leaders figure out how to say yes. ronald reagan and i'll say it, i voted to impeach the guy, bill clinton. bill clinton would always figure out that when republicans said something he agreed with he would tell people. hey, you know that's a good idea. they are right. and i guess as a politician that's what i don't understand about republicans these days. i always look for an excuse to agree with my political opponents. if they say something i agree with, i embrace it because i know that's going to give me a lot more credibility when i start talking about the debt, when i start talking about tax cuts, when i start talking about cutting regulations. if i can find something on gun control that doesn't offend my sensibilities on the second amendment, that are consistent with what reagan said and scalia
7:38pm
said, that's great oil embrace that. i'll win votes from independent swing voters and then i win on the deficit. >> you can -- >> on cutting regulations. where it matters. >> you can still be a principled conservative. this is all music to my ears. joe i got to take a break. stay with me. we'll have you back. i want to talk some about fiscal policies and what republicans should or should not do about that crisis. meanwhile we'll talk about it now. a group of leading conservatives joined forces on debt spending today. they penned an op-ed on why the threat of a default ought to be used to force a balanced budget a threat of a debt default. i believe this is completely dead wrong. i think it will lower our credit rating, damage our economy. by the way it's totally unworkable. but we got to talk. joining me now is the co-author of that op-ed. we bring back our friend, cnbc contributor a former bush white
7:39pm
house deputy press secretary. let me begin with you mr. nino. i want to cut spending like nobody's business. you mess around with the debt ceiling i'm going tell you, buddy, the whole world, fiscally, economically and politically is going to come crashing down on your head. >> nobody wants to mess with the debt ceiling. what we want to do is to have a reasonable plan to raise the debt ceiling while getting on a path to balance. the only way to get spending cuts is to fight for spending cuts. the only way to have a debate is to debate. for the republican party to build in a bunch of assumptions about what the president will or won't do six weeks from now when we haven't even had a debate is putting the cart before the horse. let's say we'll raise the debt limit so when you go to college our fiscal house is in order. >> i want that debate. tony, you look at the "wall street journal" today a couple of important news articles. these are news articles. gop split on debt ceiling approach.
7:40pm
that's one. some in gop, don't pay all the bills now. all right. debt default and prioritization. okay. prioritization in particular, tony, there's 80 million payments per month. can you imagine this prioritization plan? i mean it's beyond the pale. >> it's really not workable at all, larry. i think, you know, when people -- i think it's hard for people to get their arms around just how big and complex a $3.2 trillion economy or government it is and all of these transactions and how they work and there's not a great understanding of just the flow of cash in government. now, you know, in order to do prioritization we need to stop a whole lot of payments which is technically impossible to do in order to make some other payments. but to make those other payments presumes you have revenue that's come in on time in order to make those payments like interest payments on the debt. so just from a cash flow
7:41pm
standpoint on a daily cash flow basis it's probably impossible to do. it certainly is impossible to do for any length of time. but the bigger question, larry, is why anybody thinks that's wise? why anybody thinks we were going to turn off payments to, you know, government contractors, perhaps the social securitys is recipients. >> veterans. food stamps. >> in order to pay interest to, you know, to the chinese and japanese who own our debt. >> tony, i think that's a bunch of red herrings. know one wants to go past a debt limit but nobody wants to sit in a pot of water waiting for it to boil. >> stop using the debt ceiling. you'll have a continuing resolution that runs out two weeks afterwards. why risk. in fact, if this is the rhetorical debate you want to have -- >> the problem with the republican party we get into this incrementalism where we assume we can win and keep putting off the debate.
7:42pm
let's have a debate about whether or not we should balance our budget. >> a continuing resolution will be passed. the debt ceiling will be raised, right. >> i agree. the debt limit should be raised. >> should be raised with spending cuts and policy changes. >> why. >> so we can put our nation on a path to balance. >> why not have the fight on resolution. you're talking about future spending and not threatening the full faith and credit of the u.s. government. >> nobody is threatening the full faith and credit. >> it undermines your argument to have it during the debt ceiling debate. >> we can have this debate right now. we need it for the next month and come together a month from now and figure out where we stand. to prejudge this debate and say the president won't do x, the president won't accept cuts before we go the american people and say it's unreasonable to have a president of the united states who doesn't think we have to have spending cuts. >> i would be advising the president the same thing. look out to congress you guys
7:43pm
send me a bill to raise the debt ceiling. >> you would be advising the president. >> use the spending sequester. it's so important to drive through and then the continuing resolution. a lot of damage can to be done on these three to six months crs. thank you very much. now we have evidence of some strength in the economy. today the numbers are pretty good. will it keep spurring the stock market? i'm bullish on that story. with the spark cash card from capital one, sven gets great rewards for his small business! how does this thing work? oh, i like it! [ garth ] sven's small business earns 2% cash back on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve great rewards!
7:44pm
[ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here's your invoice. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ male announcer ] just like you, business pro. just like you. go national. go like a pro.
7:45pm
7:46pm
some some stock market work. boeing shares continue to fall in after hours on news that the faa has grounded all 787s. meanwhile apple is back above 500 bucks after a big rebound today from yesterday's 3% loss. but, let's take one more look at the even bigger gains for gun stocks today. smith and wesson closed up 5.5%. cabela up 6%. jpmorgan finished up and goldman sachs closed up 4%. finally a new historic high for dow transports today, up 15% in
7:47pm
the last two months. let's talk to zak carabel. manufacturing has had a very good come back if we can put that up on the screen and that includes business equipment or capital goods. that also has had a come back. so i was worried for about five or six months. looks like we're ending the year with good stuff. there's your business equipment. it's gotten back up in the last two months and overall manufacturing the same. is it possible the economy is better than we think. ? >> anyone who has been looking at this for the past three to six months recognizes we're in a very stable, not particularly dramatic, not overly sexy but clearly not disastrous economy. that doesn't raise all sorts of celebratory bells but in a world where people's predisposition is to look for a crisis and assume the worse, consistent okay is a
7:48pm
whole lot better. none of these numbers that we've been talking about this let's say five, ten years ago would have struck us as particularly robust. retail sales up half of a percent over the holiday for the month. good number. not an incredible number but a whole lot better than everyone saying oh, this is terrible. >> i think we have the inflation chart. let me put the cpi up. the cpi is falling if i'm not mistaken. for all the talk by the inflationistas of the federal reserve's monetary policy which i basically disagree take a look at that. inflation is one of our problems. quick question. one of the leaders of this market, banks. financials. can that last in this environment? >> i mean look banks have a long way that they fell and they've had a long pathway back to something circa 2006-2007. they sri lankan as a percentage of market gap in the s&p. they are no longer dominant.
7:49pm
that's all for the best. we have a much more diversified market. we should. i wouldn't say that the banks need to lead this matter. they've done very well. >> who is going to lead the market? >> i think you'll have a market without leadership but that doesn't mean a market that doesn't go up. you have multiple sectors of strength. technology. be inning to see how amazon does. you have a global economy growing modestly. >> are you worry about apple? >> as a company? no. am i concerned about apple as a stock at 500, i will be glad if we talked less about apple. it's one company amongst many. anybody in silicon valley has to be worried about the fact that their franchise is of extremely short duration. >> boeing. this boeing story is creeping up, getting worse on a daily
7:50pm
basis. would you get rid of boeing? >> i haven't owned boeing for a while. plus you got to understand boeing's huge defense business which no matter what happens with sequestration, i think boeing is probably -- their strength is overestimated. and unlike a cell phone problem when i hear about an airplane that may be blowing up and people saying it's not a big deal i would be concerned flying a 787 right now. >> now my friend joe scarborough is about to rejoin us. he's not alone former governor howard dean and rick lazio is also with us. we'll talk about the future of the republican party on larry kudlow. please stay with us. almost tastes like one of jack's cereals.
7:51pm
fiber one.
7:52pm
uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! yeah, this is pretty good. [ male announcer ] over a third of a's fiber. fiber one.
7:53pm
welcome back to welcome back to "the kudlow report." maybe it's more of the joe scarborough larry kudlow special on rehabbing the republican party if such a thing is possible. we're joined also by former dnc chair howard dean. he wants to rehab the republican party. and former new york congressman rick lazio. joe in our earlier segment i don't know if we got to the gun control speech by obama. it seems to me republicans once again, doctor no they are not putting their heads together. what's your take on this? >> after newtown everything has changed. i was a-rated with the nra.
7:54pm
the bottom line is that the president of the united states, democrats and even some moderate republicans are going to be right on an issue where 85% of americans now want complete background checks. over 60% of americans believe that assault weapons should be banned just like ronald reagan believed that assault weapons should be banned. i mean this is one more example of how the republican spaert is going to be on the wrong side of history, fighting for survivalists who need assault weapons instead of fighting for lower corporate tax rates to make our country more competitive across the nation. it's the same thing like in the last primary. we were talking about contraception. something that was resolved in 1965 by the u.s. supreme court. instead of talking about the fact that democrats and the senate under harry reid haven't put a budget out for 1357 days. we're always choosing the wrong fight. >> hang on, joe.
7:55pm
>> we're on the wrong side on a lot of these issues. >> is your friend and mine joe scarborough right. so right in what he's saying? >> yes. the fact is that the party needs to hearn how to talk to people who are making under $50,000 a year. people who have aspirations of starting a new business. we need to talk about people in terms of saving and invest and own things and control things and hire other people. it can be incredibly inspirational story. but the party also has to have tolerance for people within their group as republicans who can support reasonable gun control, who can support environmental initiatives. >> inclusiveness. big tent. >> that focuses on growth, opportunity, responsibility. doesn't leave the social issues behind. it's a great opportunity for republicans to broaden the discussion about guns. i mention towed before there's 40 states in america that have
7:56pm
tax credits for the film industry. how about the president and those 40 governors stand up and show a moral initiative and embarrass people in the entertainment industry and tone down the violence and showing so much of the guns that they are trying to ban right now. >> let's go to my friend howard dean. are the republicans playing their cards wrong now on the gun limit discussion as well as the debt limit discussion? i ask you governor howard dean. >> you're setting me up. here i am the only democrat on the program giving republicans advice. the republicans have missed the boat because they are demographically out of touch with the rest of the country. i agree with joe and rick and you. i think the winning card for republicans over the long run is economics and as long as they stick to being anti-immigration and anti-women and anti-gay there's no attraction by under
7:57pm
35 voters. you can't get them if you beat up on their friends. this is a generation that looks like america is going to look in 2050. >> joe scarborough, what about economic growth. that's a message republicans used to have that was a winning message. not redistribution, not the entitlement state but economic growth and jobs. whatever happened to that? >> you know, we lost the showdown at the end the year when we had the cliff, the fiscal cliff. we're now setting ourselves up and you get this right, 100%. we're not is going to be talking about economic growth because we're going to be talking about a debt ceiling debate. we're going push ourselves all the way to the end much it, republicans are going to say that they are going to just say no to raising the debt ceiling and then what happens the day after? suddenly they start getting phone calls from whether it's jamie dimon or the coke brothers, or you larry kudlow and what's going to happen? they will set themselves up for
7:58pm
failure again. one more example how we're not a conservative or not moderate. >> joe may be right but let me tell you in ten years we'll spend every dime of revenue on entitlements and debt service and the president need to show some leadership. >> as always we ran out of time. that's it for tonight's show. thank you gentlemen. i appreciate it very much. [ male announcer ] staples is the number-one office superstore ink retailer in america. now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy. when you spend $50 on hp ink. we replaced people with a machine.r, what? customers didn't like it.
7:59pm
so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

Terms of Use (10 Mar 2001)